GBP / USD
On Thursday, the business activity index in the service sector of Britain (Services PMI) shown in the March assessment fell from 54.5 to 51.7 which is the lowest since July 2016. This occurred against the background of the overall dollar strengthening and the growth of the stock market, with a decline in the price of the British pound by 75 points. According to news, the reason for the negative Services PMI is the Brexit uncertainty. In the United States, neutral economic indicators were in the sphere of employment and trade balance emerged. Investors also anticipate for the US labor data later this day with an optimistic forecast. The unemployment rate is expected to drop to 4.0% from the current 4.1%.
In the evening, the head of Bank of England Mark Carney will speak on an abstract topic about climate risks in Holland. At 6:30 PM in London time, the head of the Federal Reserve, Jerome Powell speaks about economic prospects in Chicago. It is possible that Powell will try to correct his mistake of "soft" speech after the Fed meeting on March 21 and give a more aggressive tone to his statement. We are expecting that the rate of the British pound will enter the range of 1.3910 / 30.
* The presented market analysis is informative and does not constitute a guide to the transaction.
